According to the lawsuit, defendants made materially false and misleading statements that critically failed to disclose that: (1) the Company’s XP8 was experiencing significant software challenges; (2) these software issues adversely affected how the device’s Qualcomm chipset, which supported Band 14 access, connected to AT&T’s carrier network configuration; (3) the Company’s XP5 and XP3 devices were experiencing serious software defects that adversely affected their optimization with certain accessories; (4) due to these undisclosed issues, the Company was reasonably likely to delay the launch of new products; (5) and as a result of the foregoing, the Company’s financial results would be materially and adversely impacted. When the true facts finally entered the market on September 10, 2019, the Company’s stock price fell $3.30, nearly 47%, in a single trading day.